Every weekday, Jim Cramer's CNBC Investment Club releases the Homestretch, a practical afternoon update to coincide with the last hour of trading on Wall Street. Bonds in the driver's seat: Stock markets take a breather Monday. A pullback this week would end the S&P 500's longest six-week winning streak of the year. Against the market, U.S. Treasuries sold off again sharply, with the 10-year Treasury yield rising about 10 basis points to 4.17%. The 10-year Treasury yield has not been this high since July. Long-term interest rates have been steadily rising since the Fed cut short-term borrowing rates by 50 basis points at its September meeting. So far, asset managers have been correct in betting that U.S. bond prices would fall and yields would rise. Cyber: Cybersecurity stocks hold their own in a turbulent environment. The group is reacting to Morgan Stanley's upbeat comments about the industry. The analyst hypothesizes that firewall update activity will pick up in late 2025 and 2026, given four- to five-year replacement cycles, increased network traffic, and record levels of threat activity, and predicts that network security stocks will I have a bullish view on Supporting this view, a recent analyst survey of value-added resellers (VARs) and chief investment officers showed that network security is a top spending priority over the next 12 months. . The analyst raised his price target for Palo Alto Networks from $421 to $446 (street high), Check Point Software from $170 to $183, and Fortinet from $69 to $105. , also named the company as a top pick. Because the focus of this memo was network security, there was no action regarding CrowdStrike, which was recently added to the portfolio. CrowdStrike specializes in endpoint security. Broadly speaking, network security uses firewalls to protect corporate network assets, while endpoint security focuses on protecting devices such as laptops, desktops, smartphones, and IoT devices that connect to the corporate network. Masu. Palo Alto is giving Morgan traction in this space, with “large-scale platform deals, accelerated product cycles (Cortex, AI Security), and AI-driven efficiencies that will drive margins higher over time.” -One of Stanley's favorite companies. The analyst noted that third-quarter checks were “the strongest” and that there was “a slight upside to product revenue expectations” due to the refresh. Morgan Stanley's memo supports our decision to own both Palo Alto Networks and CrowdStrike. Palo Alto Networks is just a few quarters away from starting its product update cycle. Additionally, its “platforming” strategy (bundling of services) is driving larger transactions. Meanwhile, CrowdStrike, despite maintaining its market leadership, is still at around 11% from its pre-outage levels. Next up: After the closing bell on Monday, we'll see earnings from Nucor , Logitech , and Zions Bancorp . Tuesday is a huge earnings day with Danaher, GE Aerospace, RTX, Lockheed Martin, Verizon, GM, 3M and several other companies scheduled to report. Danaher expects the recovery in the bioprocessing market to continue to advance, and the company affirmed its expectations for revenue to grow at low-single-digit or higher rates by the end of 2024. I am. (See here for a complete list of Jim Cramer's Charitable stocks.) Trust us. ) As a subscriber to Jim Cramer's CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust's portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
Palo Alto Networks CEO and Chairman Arora Nikesh speaks at WEF in Davos, Switzerland on May 23, 2022.
Adam Garica | CNBC
Every weekday, Jim Cramer's CNBC Investment Club releases the Homestretch, a practical afternoon update to coincide with the last hour of trading on Wall Street.
